Forex

Dollar Reverses Drop Before Fed Minutes, Data as Risk-Off Fades

Published

7 years ago

July 5, 2017

Dollar Reverses Drop Before Fed Minutes, Data as Risk-Off Fades

The Bloomberg Dollar Spot Index reversed early losses on a move fueled by the greenback’s rally versus the yen as risk sentiment improved across markets.

As Treasuries erased their initial drop, the dollar rose to its strongest level versus the yen since May 16 at 113.59, on a firm rebound from its 112.83 Asia-session low. Weakness early on came as geopolitical concerns were at the forefront of traders’ minds and demand for safer assets prevailed. Most European stock markets started on a positive note, supporting a rally in euro-yen, before erasing their gains.

Strong exporter supply near 113.50 caused the dollar’s rally versus the Japanese currency to lose momentum, according to traders in Europe and Asia. A close above the daily trendline resistance at 113.36 may open room for a test of the May 11 high at 114.37 as momentum studies signaled the move has legs. DeMark TD Sequential offered a note of caution as a sell setup series might be completed on Thursday, suggesting short-term losses.

Investors will focus on U.S. durable goods and factory orders data before the release of the minutes of the Federal Reserve’s June meeting. While traders will keep an eye on any signs regarding the timing of balance sheet reduction, as that may delay the timing of the next rate hike, they will also look for clues on whether an increased number of policy makers were concerned over poor inflation growth.

Should most Fed officials reflect Chair Janet Yellen’s view that they can look past inflation numbers and note improved financial conditions, and given the latest comments by policy makers over equity market strength, investors may need to move closer to the Fed’s dot plot.

Dollar’s broad recovery weighed on the euro, which failed to hang on to gains and traded as low as 1.1318 after European Central Bank Executive Board Member Benoit Coeure’s comments that the ECB hasn’t discussed policy changes yet
- These comments add onto recent ones that came as an attempt to ease the effect of Mario Draghi’s speech in Portugal, which was seen as hawkish, and possibly a game changer as far as ECB monetary policy is concerned
- North Korea troubles, U.S. data and G-20 summit this week may keep vol term structure inverted
U.K. services PMI came close to expectations and had little effect on sterling, which remained defensive
- Cable was little changed at 1.2919 versus a 1.2894 day low; demand from leveraged investors to fade dips is strong on increased rate-hike odds, said the traders, who asked not to be identified as they weren’t authorized to speak publicly
- BOE’s Saunders says U.K. households should prepare for tighter policy “at some point” in an interview with the Guardian newspaper published on its website

Up Next

Yen Rises on Haven Demand as Treasury Yields, Equities Decline

Don't Miss

U.K. Non-manufacturing Expands Less Than Projected

Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Comments

Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

22 hours ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

23 hours ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

2 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.